Failure To Deliver Documents And Cancellation Of Allotment: Delhi State Commission Holds Essel Housing Liable For Deficiency In Service
Live LawThe Delhi State Commission, presided by Justice Sangita Dhingra Sehgal and Ms. Pinki held that builders have a duty to assist buyers and failure to deliver requisite documents amounts to deficiency in service Brief Facts of the Case The complainants booked a flat with Essel Housing Projects/builder and later changed the payment plan to a “Dream Scheme.” Despite making initial payments, they faced delays in receiving essential documents from the builder required for securing a bank loan. Observations by the State Commission The State Commission observed the builder failed to provide necessary documents promptly, delaying the complainants' ability to secure a loan. Relying on principles established in Modern Insulators Ltd. vs. Oriental Insurance Co. and other cases, the commission emphasized the builder's duty of care and responsibility to assist buyers. It ruled that the builder's failure to deliver documents and the hasty cancellation of the allotment constituted a clear deficiency in service.